Disclosures must be a duty, not a formality: Sebi chief Tuhin Kanta Pandey

Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (Sebi), on Monday said that transparency, strong governance, and market integrity are critical to building resilient financial markets, urging listed companies to treat disclosures as a “duty, not a formality.” 

Speaking at the IMC Chamber of Commerce and Industry Capital Markets Conference 2026 titled “Strengthening India’s Financial Markets – Depth, Efficiency and Stability”, Pandey said corporate governance must be “real, not decorative,” with boards expected to ask tough but constructive questions. 

He also announced that Sebi will launch a multi-year capacity-building initiative for independent directors in collaboration with industry bodies and academic institutions. 

Intermediaries, market institutions key to trust 

Pandey noted that intermediaries such as merchant bankers, brokers, investment advisers, and portfolio managers are “gatekeepers of trust” while Market Infrastructure Institutions — including exchanges, clearing corporations, and depositories — form the backbone of the financial system. 

“As markets grow, the governance, technology and resilience of MIIs must remain strong. Market integrity is built before a crisis; it cannot be fully repaired after trust is broken,” he said. 

Global risks highlight need for strong markets 

Referring to geopolitical tensions in West Asia, Pandey said global disruptions can quickly impact energy prices, inflation, capital flows and investor sentiment. 

“For India, this underlines the need for markets that are deep, efficient and stable enough to withstand external shocks,” he said, adding that regulation must evolve alongside changing markets, technologies and risks. 

Pandey said that Sebi’s approach of “optimum regulation” — a balance between enabling growth and maintaining safeguards. “Too little regulation can damage trust, while too much can slow growth,” he said, noting that Sebi is focused on proportionate, risk-based regulation that facilitates capital raising while ensuring investor protection. 

He highlighted recent steps to streamline processes for alternative investment funds (AIFs) and stated the need to deepen debt markets through greater issuer diversity, improved liquidity and wider investor participation. 

According to Pandey, market integrity remains central to sustainable growth, stressing that liquidity and scale alone cannot ensure confidence without fair conduct, transparent disclosures and robust surveillance. “Integrity means fair pricing, reliable disclosures, accountable intermediaries and credible enforcement,” he said. 

Highlighting rapid technological changes, Pandey said innovations such as digital onboarding, faster settlements, REITs, InvITs, municipal and green bonds have helped deepen markets and widen access. However, he cautioned that emerging technologies, including advanced AI systems, also pose risks. 

“Algorithms may move faster than human controls and digital platforms may become channels for fraud,” he said, adding that Sebi will soon issue an advisory on risks arising from AI-driven tools and vulnerability detection systems. 

Focus on investor empowerment 

Pandey said India has seen a surge in retail investor participation, driven by mutual funds and digital platforms, but emphasised that access must be matched with awareness. “Investor protection prevents harm; empowerment builds capability,” he said, calling for clearer communication on risks, costs and grievance mechanisms. 

He highlighted Sebi’s ‘Project Jagrook’ as a nationwide initiative to promote investor awareness through coordinated efforts with market institutions and industry bodies. 

Concluding his address, Pandey said building deep, efficient, and stable markets require collaboration across stakeholders. “Regulators set the framework, industry drives implementation, intermediaries shape conduct, and investors provide trust and capital,” he said. 

The conference was attended by industry leaders, including Ashishkumar Chauhan, Managing Director and CEO of the National Stock Exchange of India, along with senior representatives from the IMC Chamber of Commerce and Industry.